Retreats from the frenetic pace of life can take many forms: coastal resorts the world over, top-tier skiing, and rural country escapes. These varied locations mean that leisure and relaxation isn’t limited to peak times of year, but can be found frequently and with ease. The locations in the Savills Prime Residential Index - World Second Home Locations attract travellers for both holidays and those looking to take a more permanent stake in the area by purchasing property.

Sixty global locations were analysed for this index, measured based on their high-end retail and restaurant offerings, the four and five-star hotels in each market, the quality-of-life score for each location, prices for prime residential properties, and each location’s global reach and connectivity through flight connections, Google Trends data, and buyer source markets. Each of these indicators was given an equal weighting throughout the analysis, which allowed the researchers to determine specific effects of individual factors through the process.

Top spot in the Savills Prime Residential Index - World Second Home Locations, is claimed by the Côte d’Azur as a result of its strong offerings across all categories. Next door along the coast, and in the rankings, is Monaco. The principality scores well in its prime residential offering, lifestyle and hospitality amenities, as well as its global reach.

The highest-ranked ski destination in the index is Aspen; this Colorado destination is one of the most sought after second home locations in the United States. With top-tier retail, restaurants, hospitality, and prime residential properties, the market is a year-round natural haven for prime buyers.

Two European locations round out the top five: Tuscany and Mallorca each offer the leisure and lifestyle amenities that buyers desire, as well as top-tier hospitality and global reach. Each location can boast international buyers and international renown for their statuses as top travel destinations.

The pandemic-related bounce that was seen across the global property markets, but particularly in second home markets, is readily apparent in the prime residential second home location pricing. Over the past year, capital values across the retreat markets increased by an average of 7 %, demonstrating the continued prioritisation of the home in the wake of Covid-19 lockdowns.

However, this rate is lower than what many locations experienced during the pandemic when many city residents moved to second home locations in search of greater space.

The locations with the highest prices and higher levels of price growth were relatively unsurprising. The highest priced and faster growing destinations tend to be space constrained or have limitations on the number of properties which can be built. Ski locations in particular stand out here, with an average price growth of 15% over the past year. In the years to come, islands, microstates, and fully built-out areas will likely continue to see price rises as demand increases from prime buyers.

Prime residential prices vary widely worldwide; from Monaco with the most expensive housing globally, to South Africa’s Plettenberg Bay where prime countryside properties remain at comparatively lower price points. Across the locations analysed in the Savills Prime Residential Index, average capital values range from over $5,000 per square foot to less than $200 per square foot for a prime property. Though there are differences in price, the calibre of property across the index widely remains the same regardless of location.

Many global destinations have similar strengths to locations currently in the Savills index. The celebrity factor, a new high-end development, wellness benefits, and the established neighbour effect, have historically helped locations become prime and will likely continue to do so.

In the longer term, however, there could be to be a shift leisure habits. In Sweden, environmental concerns from the impact of air travel led to the rise of ‘flight shaming’; however, Swedes have traditionally holidayed closer to home with many second homes found in the areas surrounding Stockholm. If the no-fly movement gains traction in other countries, leisure locations with good rail connections, close to large centres of wealth generation are likely to benefit.

World Second Homes Locations – Index rank and price per square foot’. ‘Source: Savills Research

Source: Savills Research

THE INDEX COMPONENTS

Prime residential prices

Prime residential prices can vary significantly worldwide. Across the locations analysed in the Savills Prime Residential Index - World Second Home Locations, average capital values vary from less than $1million to over $25million for a prime property. Though there are differences in price, the calibre of property across the index largely remains the same regardless of location.

Leisure and lifestyle offering

Lifestyles in these locations are as varied as the locations themselves, from laid-back beach life in Cabo San Lucas to the speed that can only be found skiing down a mountain in Val d’Isère to leisurely countryside walks in the Cotswolds. These varied locations are all linked, however, by their provision of retail, restaurants, and their high quality of life scores, which make the locations prime destinations for those looking for a non-city escape.

Hospitality

For those experiencing a location for the first time, the variety of top-tier hotels in a location will contribute to how well a location or area does in their estimation compared to other locations. Often prospective new residents will try out the location by staying in a hotel (or private villa) to experience the lifestyle and amenities of a location before deciding to purchase a property.

Connectivity and global reach

Hybrid living is a trend that has risen to prominence in recent years. With hybrid working enabling people to spend more time away from their city bases, time spent in second home locations is increasing, turning seasonal destinations into year-round locations with stays stretching across the seasons. Many of the locations in the index are within easy reach of major cities and airports, enabling residents and travellers to reach them with ease and stay for any amount of time. How international a location is often depends on the global perception of the destination